The World Bank on Tuesday forecast China's economic growth to slow to 4.4% in 2026 and to 4.3% in 2027, as the property sector continues to adjust to lower housing demand and consumers remain cautious.

The World Bank said in a statement: "The risks to the outlook are broadly balanced... If the downturn in the property sector worsens further, it could increase pressure on consumer spending, real estate investment, and related sectors."

Thu, 02 2026

It added that the Chinese economy showed resilience in the first half of the year, supported by investments in high-tech sectors and strong exports, but weak domestic demand and continued pressures in the property market are expected to curb growth over the next two years.

The bank noted that strengthening the social safety net, raising benefit levels, and expanding coverage to include informal sector workers would support domestic consumption and boost household confidence in spending rather than saving.

It also pointed out that fiscal stimulus and artificial intelligence investments could be positive factors driving growth to levels higher than current forecasts.